PROBLEM

Kana Lou Cassandra Besana

1
Cash 399 000
Ordinary Share Capital 350 000
Share Premium 49 000
to record the issuance of 7,000 ordinary shares at P57
2
Retained earnings 62 000
Ordinary Share Capital 50 000
Share Premium 12 000
to record the distribution of 1,000 shares of bonus issue at P62
3
Treasury shares 19 800
Cash 19 800
to record the 300 shares bought in 2017 at a cost of P66/share
4
Cash 452 000
Preference Share Capital 400 000
Share Premium 52 000
to record the issuance of 4,000 preference shares at P113
5 Treasury shares xxx
Cash xxx
to record the reacquisition of the companys preference shares

Cash xxx
Treasury shares xxx
Share Premium 5 000
to record the reissuance of preference shares for P5,000 more
that its costs
6
Cash 610 000
Retained earnings 610 000
to record the corporations earnings after income taxes
7
Retained earnings 312 600
Cash 312 600
to record the cash dividends paid out by the corporation since
incorporation
8
Retained earnings 75 000
Retained earnings-appropriated
for General Contingencies 75 000
to record the appropriation of retained earnings for general
contingencies
9
Retained earnings 19 800
Retained earnings-appropriated
for treasury shares 19 800
to record the appropriation of retained earnings for treasury
shares
 Ordinary Share Capital
350 000 (1)
50 000 (2)
400 000

Preference Share Capital

400 000 (4)
Share Premium
49 000 (1)
12 000 (2)
52 000 (4)
5 000 (5)
118 000

Treasury Shares
19 800 (3)
 Retained earnings
(2) 62 000 610 000 (6)
(7) 312 600
235 400

Total retained earnings 235 400

Less: Appropriations
for General Contingencies 75 000
for Treasury shares 19 800 (94 800)
Retained earnings unappropriated 140 600
 Pathways Corporation
Statement of Financial Position
December 31, 2017
Shareholders equity section
Ordinary share capital, P50 par, 15,000
shares authorized, 7,700 shares issued P 400,000
Preference share capital, P100 par, 10,000
shares authorized, 4,000 shares issued 400,000
Share Premium 118,000
Retained earnings,
Appropriated
For treasury shares P19, 800
For general contingencies 75, 000
Unappropriated 140, 600 235,400
Less: Treasury shares, at cost (19,800)
Total shareholders equity P 1,113,600
 Pathways Corporation
Statement of Financial Position
December 31, 2017
Shareholders equity section
Ordinary share capital, P50 par, 15,000
shares authorized, 7,700 shares issued P 400,000
Preference share capital, P100 par, 10,000
shares authorized, 4,000 shares issued 400,000
Share Premium 118,000
Retained earnings, of which P19,800 is 235,400
appropriated to treasury shares
Less: Treasury shares, at cost (19,800)
Total shareholders equity P 1,113,600